Bitcoin news

Bitcoin briefly rebounded to about $109,300 after falling below $109,000, ending the day 1.5% lower as core US inflation rose 2.9% YoY in August. Over $970 million of crypto futures contracts were liquidated, with $852 million in long positions closed. Bitcoin traders face a crossroads: the third-quarter options expiry, a $17 billion BTC options run, coincides with an August inflation reading that may influence Fed policy outlook. 69% of Myriad users predict BTC will dip to $105k before reaching $125k amid new Trump tariffs and Fed uncertainty.

BlackRock has filed a new ETF, the iShares Bitcoin Premium ETF, which uses a covered‑call strategy to generate income from Bitcoin holdings rather than simply tracking price. The fund will write calls on its BTC exposure and distribute the premiums to investors, turning volatility into yield. The move highlights BlackRock’s focus on Bitcoin and Ethereum, as its flagship iShares Bitcoin Trust is the world’s largest crypto ETF. With $260 million annual revenue from early Bitcoin and Ethereum products, the firm sees institutional crypto exposure as still in its early stages but growing.

Bitcoin fell below $109,000 after a FOMC‑related shock, wiping $170 billion from the crypto market. The price dipped to $108,652, while Ethereum slid under $4,000 and Solana fell below $200. The crash liquidated roughly $11.8 billion of leveraged altcoin bets and $3.2 billion of speculative Bitcoin positions, resetting risk appetite. Market cap hit $3.72 trillion with dominance at 58%, and analysts warn a breakout could come from the apex of a triangle pattern near $110,000.

Bitcoin faces renewed pressure as key holders cut their positions in perpetual futures and large holders have slowed accumulation, weakening the asset’s support base. The decline in futures exposure, a 65.7% drop, and a 1% reduction in whale supply have reduced liquidity, while a falling RSI suggests bearish momentum could push prices toward $107,000, with a possible rebound if sentiment improves.

Glassnode says Bitcoin is in a corrective phase after the Fed rate cut pushed the price to $117,000. Long‑term holders have sold 3.4 million BTC, the highest in a cycle, and ETF inflows collapsed to near zero, creating a fragile backdrop for further decline. Spot and futures markets are under stress, with open interest dropping and put demand surging, while the short‑term holder cost basis at $111.8k has been breached, raising the probability of deeper cooling. However, October—nicknamed 'Uptober'—has historically yielded an average 21.9% return and closed in red only four times in 16 years, giving some hope of a rally as analysts predict a sideways move rather than an immediate bearish breakdown.

Bitcoin's fear index dropped to 28/100, its lowest since April, matching the last time BTC traded near $83k. The dip below $109k triggered liquidations and pushed sentiment into a fear‑heavy zone, prompting speculation of a reversal. Social‑media sentiment shows impatience, with retail users predicting lower prices, while larger traders add positions. These signals, combined with the index divergence, suggest the market could be at a turning point, though confirmation remains uncertain.

CryptoQuant reports that Bitcoin‑holding Digital Asset Treasury (DAT) companies that raised capital through PIPE programs are seeing steep stock declines, with some falling 97%. The dip triggers investor selling, risking forced liquidation of Bitcoin assets, which could further depress Bitcoin’s price and create a vicious cycle.

TeraWulf is raising about $3 billion via Morgan Stanley to build data centers, backed by Google’s $1.4 billion backstop that would boost credit ratings. The deal could launch in October in high‑yield bond or leveraged‑loan markets, though terms are still negotiating. Earlier in August, TeraWulf secured a ten‑year colocation lease with AI provider Fluidstack, worth $3.7 billion in contract revenue, with Google taking a 14% stake. The combined $3.2 billion investment signals a push to convert crypto‑to‑AI infrastructure.

More than $21 billion in Bitcoin and Ethereum options will expire on Deribit today, the largest Q3 quarter-end expiry. Bitcoin’s $16 billion exposure has a put-to-call ratio of 0.71, indicating bullish sentiment, while Ethereum’s $5 billion exposure has a PCR of 0.86 and a max-pain level near its $4,000 support. The max-pain points—$111,000 for Bitcoin and $3,800 for Ethereum—could press spot prices toward those levels, raising concerns that a fall below $4,000 might trigger a sharper downside for ETH. Traders expect heightened volatility, hedging amid rate-cut uncertainty and setting a volatile tone into the weekend.

Bitcoin fell below $112k to $108,700, hitting a four‑week low. Onchain data from Glassnode shows cumulative realized profits of long‑term holders at 90% of coins moved three times, a level seen at prior cycle tops, suggesting possible exhaustion. The Spent Output Profit Ratio is slightly above 1 and Short‑Term Holder NUPL is near zero, indicating potential liquidations. Analysts warn that without renewed institutional demand, a deeper cooling phase could occur; the price may need to rally to $115k before sentiment shifts.